30 August 2014
FBME has made a significant contribution to the economy of the Republic of Cyprus over the many years that it has had a presence in the country. Just taking the past six years or so, for instance, from the beginning of 2008 to August 2014, the Bank had spent EUR 134 million in the country.
29 August 2014
During the evening of 28 August, the Central Bank of Cyprus issued a statement regarding the crisis over the Cyprus branch of FBME. It was welcomed by the shareholders as a contribution to the debate – or at least a start of a debate.
28 August 2014
Criticisms and complaints are circling the Central Bank of Cyprus on all fronts: banking regulation, foreclosures, past and future actions and, of course, competence. The saga with their actions against FBME Bank’s Cyprus branch, avoidable, unnecessary and unwarranted as they are, have done much to worsen the reputation of the Republic of Cyprus in so many ways.As we are hearing, complaints are increasinly turning into legal action.
27 August 2014
Shareholders of FBME Limited have said that they are holding the Central Bank of Cyprus and individuals within the Central Bank personally liable for damage and loss suffered by FBME Bank, its depositors and owners. Those persons considered responsible include but are not limited to the special administrator appointed by the Central Bank to control the operations of the Cyprus branch of FBME Bank.
27 August 2014
FBME Limited co-owner, Fadi M Saab, has sent a letter to employees of FBME Bank on behalf of himself and co-owner Ayoub-Farid M Saab. The letter thanks staff for their loyalty and expresses empathy with them in this time of extreme frustration.
It goes on to explain the four-pronged strategy being employed to tackle the difficulties which the bank is currently facing: addressing the concerns of the US authorities through the forensic investigation; employing legal recourse to combat the actions of the Cyprus Central Bank; lobbying to get transaction processing unfrozen, and planning for the future of the bank.
To see the letter, click here
23 August 2014
Hearings on FBME objections to a possible sale of its Cyprus branch, due for 22 August, have been deferred by the Cyprus Supreme Court to 15 September. The Central Bank of Cyprus has undertaken to make no move on this matter in the meantime.
In effect, the deferment has the effect of providing more time for the completion of the investigation being carried out by forensic accountants.
23 August 2014
FBME Bank Limited’s home regulator, the Bank of Tanzania, has reaffirmed its rights in the supervision and regulation of FBME Bank, its operations, branches and subsidiaries. The Tanzanian Central Bank has appointed a Statutory Manager whose role includes the sanctioning and approving of all transactions and actions related to Bank.
The Statutory Manager has also reaffirmed his ruling that no instructions should be acted upon about FBME Bank without his consent.
23 August 2014
One of the world’s big three credit ratings agencies, Fitch Ratings, issued a report on 19 August 2014 questioning the ability of host supervisors, such as the Central Bank of Cyprus, to resolve problems of associated with the branches of foreign banks. Fitch quoted the example of FBME’s Cyprus branch in this regard. The agency also suggested that such independent action can hamper the orderly management of a difficult situation, which FBME’s shareholders wrote is exactly what the bank is currently experiencing.
22 August 2014
The continued barring of transactions at the Cyprus branch of FBME Bank has attracted over 1,000 written and verbal complaints to the Central Bank of Cyprus’ Special Administrator. What started as a trickle, turned into a flood and has now become a tsunami. Suggestions have been made that the Administrator may have exceeded his powers under the Special Resolution Decree since his appointment on 21 July. He is also said to have become the focus for proposed court action by complainants.
20 August 2014
On behalf of the Shareholders of FBME Limited a request for arbitration has been filed with the Arbitral Tribunal of the International Chamber of Commerce. This is in reference to the unilateral decision of the Central Bank of Cyprus to sell FBME Bank’s Cyprus branch, which the owners regard as a hostile takeover.